What the Volatility Index Tells Us About the Market
What the Volatility Index Tells Us About the Market
Anyone will find the value of the Volatility Index, or VIX. Simply visit Yahoo! Finance and within the quote box, kind "^VIX" (minus the quotation marks in fact) and you'll be delivered to a page that offers you the present value of that index. Of course, that outline page appearance like all other price quote and by itself can tell you simply what that index is value at that specific time (or 15 minutes ago if you're trying at the delayed figure).
That figure says nothing on its own. However, if you plot it against a graph, it can indicate a couple of key things that may facilitate investors decide whether to enter or exit the market relying on their current position(s). Here are 2 things that the volatility index will tell you once plotted on a chart of 5 years:
1. Is this market direction sustainable? When volatility rises, the indication is that this trend can accelerate or it will reverse suddenly. Whereas this ...
Posted : August 11, 2010 | 
Comments : 0 | 
VXX
The S&P 500 VIX Short-Term Futures Index TR is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. Specifically, the S&P 500 VIX Short-Term Futures™ Index TR offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects the implied volatility of the S&P 500® Index at various points along the volatility forward curve. The index futures roll continuously throughout each month from the first month VIX futures contract into the second month VIX futures contract.
A direct investment in VIX (commonly referred to as spot VIX) is not possible. The S&P 500 VIX Short-Term Futures™ Index TR holds VIX futures contracts, which could involve roll costs and exhibit different risk and return characteristics. Investments offering volatility exposure can have various uses within a portfolio including hed...
Posted : February 03, 2010 | Comments : 1 | 
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It took six weeks of equity losses, a series of lower-than-estimated economic reports and political turmoil in Greece to finally drive the options gauge known as the VIX above its......
Published: Mon, 20 Jun 2011 10:41:25 -0700
The VIX is down nearly 4% today, to roughly 21, retreating quickly from its three-month intraday high last week of nearly 25. Does this mean we should expect more gains in the sto......
VIX Back Above 20...
Published: Wed, 15 Jun 2011 13:11:38 -0700
The VIX has finally cracked 20, and with feeling, jumping nearly 19% to 21.65, its highest level in three months.......
No Panic in Options: VIX Takes Six Week...
Published: Wed, 15 Jun 2011 23:11:58 -0700
It took six weeks of equity losses and other bad news to finally drive the options gauge known as the VIX above its long-term average......
Panic? VIX says no...
Published: Thu, 16 Jun 2011 12:39:43 -0700
The so-called fear gauge is up, but isnt suggesting concern......
The VIX: Why The Rate Of Change Is More...
Published: Sat, 18 Jun 2011 16:29:32 -0700
Back in February 2010, I introduced Chart In Focus readers to the 7-day rate of change (ROC) for the VIX. It is a fun little indicator, and offers us a nice simple way to see the ......
No Options Panic as VIX Takes Six Weeks...
Published: Thu, 16 Jun 2011 09:47:55 -0700
It took six weeks of equity losses, a series of lower-than-estimated economic reports and political turmoil in Greece to finally drive the options gauge known as the VIX above its......
